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The cost of healthcare is ever on the rise. As countries struggle to provide universal access to healthcare, more and more people are falling into the bracket of those who cannot access such services. One of the main barriers to universal access to healthcare has been identified as the high cost of medicines. Hence, it is important for governments to ensure that medicines are affordable. One of the ways of doing this is using the IRP. Among the countries that have tried International Reference Pricing China and Japan take the lead because of its realized potential.
Cost of health care is streamlined. No country wants its people to cross the border for treatment. Hence, countries work hard to ensure that their services cost relatively the same or cheaper than the neighboring countries. By using the IRP, the two countries can, therefore, ensure that similar drugs are relatively priced across the region.
There is increased market access. The system indicates clearly the amount the patient is allowed to pay. Any excesses are handled by the government or insurance agents, depending on the country's policies. This encourages people to seek medical services as they are certain that they will not be left penniless by the time they come back from the hospital.
Companies no longer have monopoly over prices. While drug manufacturers still hold a considerable grip on the price rod, they are no longer lone rangers in the game. There are deep consultations and clear guidelines on prices. Hence, they should already know how much a particular drug is likely to cost even before it is released to the market.
Patients also stand to get better treatment. Most patients keep away from hospitals because they know that costs are way beyond their reach. However, when prices are capped, there is a maximum amount that the patent can spend. This will increase their confidence in treatment and increase access.
Referencing is critical in reducing the prices of medicines. There are many ways in which governments can regulate the costs of medicines. However, IRP is found to be the most suitable because it considers several issues to ensure that while patients benefit, the manufactures also do not lose.
This is a relatively simple method. For the implementation of this system, countries only need little information such as the costs of the same medicines in other countries. The countries used for referencing are normally those that share similar economic environments or geographic similarities. It is assumed that referencing countries have fairer and competitive prices.
The system is easy to implement. The most important tool in the implementation of this system is communication. Once the relevant IR policies have been developed, they only need to be communicated to the drug manufacturers and other stakeholders for implementation to begin. This is not only easy, but also cheap.
Over the years, the IRP has gained increased usage. It is mostly used in Asia but is also dominant in Europe. The United States is also considering its adoption. As this growth is witnessed across the globe, there is a lot that other countries can learn from China and Japan.
Cost of health care is streamlined. No country wants its people to cross the border for treatment. Hence, countries work hard to ensure that their services cost relatively the same or cheaper than the neighboring countries. By using the IRP, the two countries can, therefore, ensure that similar drugs are relatively priced across the region.
There is increased market access. The system indicates clearly the amount the patient is allowed to pay. Any excesses are handled by the government or insurance agents, depending on the country's policies. This encourages people to seek medical services as they are certain that they will not be left penniless by the time they come back from the hospital.
Companies no longer have monopoly over prices. While drug manufacturers still hold a considerable grip on the price rod, they are no longer lone rangers in the game. There are deep consultations and clear guidelines on prices. Hence, they should already know how much a particular drug is likely to cost even before it is released to the market.
Patients also stand to get better treatment. Most patients keep away from hospitals because they know that costs are way beyond their reach. However, when prices are capped, there is a maximum amount that the patent can spend. This will increase their confidence in treatment and increase access.
Referencing is critical in reducing the prices of medicines. There are many ways in which governments can regulate the costs of medicines. However, IRP is found to be the most suitable because it considers several issues to ensure that while patients benefit, the manufactures also do not lose.
This is a relatively simple method. For the implementation of this system, countries only need little information such as the costs of the same medicines in other countries. The countries used for referencing are normally those that share similar economic environments or geographic similarities. It is assumed that referencing countries have fairer and competitive prices.
The system is easy to implement. The most important tool in the implementation of this system is communication. Once the relevant IR policies have been developed, they only need to be communicated to the drug manufacturers and other stakeholders for implementation to begin. This is not only easy, but also cheap.
Over the years, the IRP has gained increased usage. It is mostly used in Asia but is also dominant in Europe. The United States is also considering its adoption. As this growth is witnessed across the globe, there is a lot that other countries can learn from China and Japan.
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